Discovery Communications Inc First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Discovery Communications Inc (NASDAQ:DISCA) will unveil its latest earnings on Tuesday, May 8, 2012. Discovery Communications is a global media and entertainment company that offers programming across multiple distribution platforms in more than 170 other countries.

Discovery Communications Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 60 cents per share, a rise of 22.4% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 59 cents during the last month. Analysts are projecting profit to rise by 6.5% compared to last year’s $2.78.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 71 cents a share versus the estimate of profit of 69 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.06 billion in revenue this quarter, a rise of 11.5% from the year-ago quarter. Analysts are forecasting total revenue of $4.54 billion for the year, a rise of 7.1% from last year’s revenue of $4.24 billion.

Analyst Ratings: Analysts seem relatively indifferent about Discovery Communications with 10 of 19 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 75.9% to $336 million (85 cents a share) from $191 million (45 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.5% to $1.12 billion from $1.01 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than twofold in the second quarter of the last fiscal year and 27.4% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.2% in the first quarter of the last fiscal year, 10.8% in the second quarter of the last fiscal year and 18.3% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 6, 2012 and May 2, 2012, the stock price rose $9.54 (21.4%), from $44.63 to $54.17. The stock price saw one of its best stretches over the last year between January 3, 2012 and January 12, 2012, when shares rose for eight straight days, increasing 6.5% (+$2.66) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 7.6% (-$3.30) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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